We currently have two SQL databases that are utilizing a merge replication. We would like to setup a separate transactional replication off one of the databases to a third database. Is this possible? If so, do we need to change anything with our distributor?
Thanks!
Yes this is possible. Nothing needs to change with the Distributor.
However, if you ever have a Merge node receive data from a Transactional Replication topology then you will need to make sure the property @published_in_tran_pub for your Merge articles is set to true to ensure the Merge triggers fire properly. It sounds like this won't apply in your case unless the third database is a Merge publisher/subscriber.